Indian benchmarks dip as world stocks tremble ahead of Trump tariffs

All 13 major sectors logged losses at the open, while the broader small- and mid-caps fell about 1% each, Reuters reported. The MSCI Asia ex-Japan, meanwhile, dropped about 0.6%, tracking an overnight decline in Wall Street equities, the report highlighted.

Trump’s proposed 25 per cent tariffs on imports from Canada and Mexico will come into effect at 10:31 am IST on Tuesday. Wall Street reacted negatively to the proposal, with the Dow Jones dropping 1.5%, the S&P 500 down 1.7%, and the Nasdaq falling 2.6%, The Guardian reported.

Trump’s double tariffs on Chinese imports, leading to an increase from 10 per cent to 20 per cent, will also become active around the same time. The US President also highlighted that reciprocal tariffs will begin on April 2, with businesses and markets gearing up for the economic impact.

Trump believes tariffs are a powerful tool to protect US businesses and reduce trade imbalances. The Guardian quoted Trump as saying, “Tariffs are easy, they’re fast, they’re efficient, and they bring fairness.”

What do tariffs mean for India?

While Canada and Mexico have warned of retaliation, higher tariffs could spur inflation in the US, leading to higher interest rates for longer and hurting foreign flows into emerging markets, including India, Reuters stated.

“We expect the market to remain flat to negative on account of concerns over continued foreign selling, imposition of tariffs by the U.S. on Canada, Mexico and lack of domestic triggers,” Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services told the news agency.

Foreign portfolio investors (FPIs) have sold over $26 billion worth of shares in India since October, including 47.88 billion rupees ($548.29 million) on Monday, Reuters noted.

Stocks to watch out for:

• • Maharashtra GST officials initiate search at three offices of RBL Bank in the state on March 3, the lender said. It did not disclose details of the alleged violation or its impact on its financials.
  • Oil downstream companies such as Bharat Petroleum Corp , Hindustan Petroleum Corp and Indian Oil Corp are in focus as oil prices slip to 12-week low on demand worries and likely OPEC output hike.
  • Indian Energy Exchange’s trade volumes in February rise 9%.

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